NEW YORK, March 22, 2012 /PRNewswire/ -- Elray
Resources Inc. (OTC.BB:ELRA) announced today that it has entered
into a binding Letter of Intent with Golden Match, a company
incorporated in the British Virgin
Islands.
Elray and Golden Match will enter into an Acquisition Agreement
in which Elray will acquire all of the outstanding shares of Golden
Match.
Golden Match is an investment holding company. Its principal
business activity is to hold a profit share agreement with a VIP
Room Gaming Promoter, the terms of which they receive 80% of the
profit stream from the Promoters. The Promoter currently
participates in the promotion of many major luxury VIP gaming
facilities in Macao, China, the
largest gaming market in the world, which include the MGM,
Venetian, Wynn, Galaxy and City of Dreams.
VIP gaming operations in Macao
consist of VIP rooms that offer exclusively high-limit baccarat
table games. Baccarat is the largest source of gaming revenue in
Macao. Gaming Promoters in
Macao have historically maintained
the majority of VIP customer relationships. The Promoters secure
VIP rooms through agreements in which they receive either a
commission on turnover or a split of the casino net gaming win or
loss on a pre-gaming tax basis.
The letter of intent includes:
Golden Match is a company that has negotiated a profit sharing
agreement with Cali Promocao de Jogos Sociedade Unipessoal Lda.
(CALI), a company duly
incorporated under the laws of the Special Administrative Region of
Macao, and promotes Casinos in
Macao SAR pursuant to a license issued by the Gaming Inspection and
Coordination of Bureau of the Government of Macao SAR Over the past
5 months, CALI has generated
approximately US$ 17 million profit
after tax.
The agreements that Cali
currently has in place are with the MGM Grand Macao, the Venetian,
Wynn, Galaxy and City of Dreams.
Mr. Lao Sio I will be appointed Chairman of the Board of
Directors with Brian Goodman
remaining as Chief Executive.
Following the completion of the Acquisition Agreement, Elray
will initially raise working capital to fund growth.
On signature of the letter of intent, Mr. Lao Sio I commented,
"I am excited by this development as it enables us to take
advantage of exciting growth opportunities that are available for
expansion that a privately held company is unable to do.
Macao has become the leading
gaming center world wide, new casinos are opening, existing ones
are expanding with more and more people visiting Macao, we
will now be able to pursue these opportunities."
Brian Goodman, current CEO stated
that, "Elray will now be well positioned to develop and grow as a
gaming entity internationally. The Macao opportunity together with the US listing
will enable the company to raise growth capital, acquire other
promoters in Macao as well as in
other jurisdictions and negotiate more favorable terms with casinos
due to its heightened profile. All in all a good result for Elray
stockholders."
About Mr. Lao Sio I
Mr. Lao Sio I is a highly educated Chinese Citizen and a
resident of Macao. After
graduating with a number of Degrees from the Macao Polytechnic
Institute Mr. Lao Sio I (39 years old) completed numerous post
graduate courses including diplomas in English as well as a number
of technology related courses.
Following a successful career in local government in
Macao, Mr. Lao Sio I entered the
gaming industry in 2003, initially as a Casino VIP host and in 2005
investing in a VIP room as a senior partner. Since that time Mr.
Lao Sio I has developed the reputation of being one of the leading,
influential and respected gaming promoters in the GCR (Greater
China Region) having negotiated deals with the largest Casinos in
Macao. As Chairman, Mr. Lao Sio I
will be leading the future development and growth of Elray.
About Elray
Elray is an established Global Online Gaming entity, which owns
and licenses Gaming Intellectual Property, Gaming Domains,
Trademarks and Player Databases.
This press release may contain "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995, such as statements relating to financial results and plans
for future development activities, and are thus prospective.
Forward-looking statements include all statements that are not
statements of historical fact regarding intent, belief or current
expectations of the Company, its directors or its officers.
Investors are cautioned that any such forward-looking statements
are not guarantees of future performance and involve risks and
uncertainties, many of which are beyond the Company's ability to
control. Actual results may differ materially from those projected
in the forward-looking statements. Among the factors that could
cause actual results to differ materially from those indicated in
the forward-looking statements are risks and uncertainties
associated with the Company's business and finances in general,
including the ability to continue and manage its growth,
competition, global economic conditions and other factors discussed
in detail in the Company's periodic filings with the Security and
Exchange Commission. The Company undertakes no obligation to update
any forward-looking statements.
Contact: Brian Goodman,
CEO
Brian@elraygaming.com
(917) 775 9689
www.elraygaming.com
SOURCE Elray Gaming